By : Erik Gruenwedel | Posted: 02 Nov 2009
egruenwedel@questex.com

Sonic Solutions’ recent incorporation of software into third-party consumer electronics devices featuring Blockbuster On Demand movies is paying off.

Sonic and Blockbuster Nov. 2 announced the Blockbuster brand name has helped increase VOD attach rates among consumers by 50%, compared to previous figures for Roxio CinemaNow powered services.

Novato, Calif.-based Sonic’s Roxio CinemaNow software, which enables distribution of digital video content, is included in TiVo digital video recorders, Samsung high-definition televisions, home theater systems, Blu-ray Disc players and select Motorola mobile phones.

Dallas-based Blockbuster and Sonic earlier this year announced a strategic alliance aimed at furthering their brands in the CE industry. Sonic acquired Web-based movie download pioneer CinemaNow last November for $3 million in cash.

“Latest device reports are a clear indication that we’ve found a winning formula in combining our Roxio CinemaNow content delivery platform with one of the most recognizable brands in entertainment,” said Dave Habiger, CEO of Sonic Solutions. “The Blockbuster brand clearly … is prompting consumers to jump at the chance to see first run hits from the comfort of their living rooms.”

Blockbuster CEO Jim Keyes said to expect by the end of the year the addition of high-definition content to Blockbuster On Demand.

“Through our multi-channel approach, we are the only entertainment provider that offers customers convenient access to media entertainment whenever and however they want it,” Keyes said.

Ralph Schackart, analyst with William Blair & Co., who maintained a “buy” status on Sonic shares, said the news underscored a growing importance by digital media companies to disclose consumer adoption to the distribution channel.

“As investor focus continues to shift to premium content distribution, we believe increasing data on actual CinemaNow performance will provide increasing transparency,” Schackart wrote in a note.

Separately, Sonic said it has more than 30 applications ready for Microsoft Windows 7 incorporated in its Roxio product line, including CinePlayer BD and CinemaNow.

 

 

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